(Bloomberg) -- A company that caters to the Hollywood private-jet set is tapping the municipal market to help it expand in Connecticut, where it hopes to serve the uber rich.
The unrated $43.8 million deal is being sold through the Wisconsin Public Finance Authority, a conduit issuer, for Clay Lacy Aviation Inc. to fund new construction and improvements at the Waterbury-Oxford Airport in Oxford, Connecticut, which is located about 80 miles from Manhattan.
The Clay Lacy Aviation bond sale is one sign that the junk segment of the municipal bond market is back, according to Jason Appleson, head of municipal bonds at PGIM Fixed Income. A number of junk and unrated bond issues struggled to find buyers this summer.
“I am seeing evidence of a growing high-yield pipeline,” Appleson said in an email. “The pipeline includes dirt deals, senior living, and project finance deals such as a vegan leather mushroom farm and this fixed-base operator.” Those operators, called FBOs, typically provide fueling and hangar rental services to general aviation and noncommercial aircraft.